Idaho news. (Blackfoot, Idaho) 1887-1891, 1887-12-17
PRESIDENTS MESSAGE.



through she operation Of present laws, frou
the Industries aud necessities Of the people
largely exceeds the sum necessary 10 meet the
expenses of the government.
When we consider that the theory Of our In
situations guarantees to every citizen the full
enjoyment Of all the fruits OF his industry
aud enterprise, with only such deduction ~
may be his share toward the careful aud econ
omeal maintenance of the government which
protects him, il is plain that the exaction u
more than this is indefensibe eXtortion aud 1
eulpable betrayal of American fairness anC
Justice.
This wrong inflicted upon those who beat
the burden OF national taxation, like other
wrongs multiplies brood OF evil conse
quences. The public treasury, which should
only exist as conduit conveying the people
tribute 10 its legitimate objects of expendl
ture, becomes boarding place for money
needlesSly withdrawn from trade aud the peo-
ple's use, thus crippling our national energies,
suspending our country's development, pre-
venting investment Ia productive enterprises,
threatening financial disturbance, aud iuYIt,
ing schemes of public plumber.
This condition Of our treasury Is not alto
gether new; and 1t has more than once OF
late been submitted to the peoples represent
atiyes in the congress, who alone eau apply &
remedy. And yet the situation still continues,
with aggravated incidents, more than ever
presaging financial CONFUSION aud widespread
disaster
Ii will not do to neglect this situation be.
cause its dangers are not now palpably immi-
nent and apparent. They exist none the less
certainly and await the unforeseen and unex
pected occasion when suddenly they will be
precipitated upon us.
On the Both day of June, 1885, the excess OF
revenues over public expenditures, after com.
plAing with the annual requirements of the
sinking fund act, was $I7, S5g, 1854; during
M
amounted to $40, I05, $3.50; and during the
year ending June 30, 1851, 1t reached the sum
OF $55, SCI, s4954.
The annual contributions to the sinking
fund during the three years above specified,
amounting in the aggregate to Sl3S, 05S. 800, %,
and deducted from the surplus as stated were
made by calling in for that purpose outstand-
ing three per cent bonds Of the government
During the six months prior to June 80,
1887, the surplus revenue had grown so large
By repeated accommodations, and 1t was
feared the Withdrawal OF this great sum Vt
money needed by the people would so affect
tue business OF the country, that the SUN of
S19S64, 100 OF such surplus was applied to the
payment OF the principal aud interest of the
three per cent. bonds still outstanding, and
which were then payable at the option Of the
government. The precaTious condition of f.
n ,ncial affairs among the people still needing
relief, Immediately after the 3Oth day OF June
u
bonds then outstanding, amounting with prin.
cipal and interest to the sum Of SIS, ST, so,
were called in and applied to the sinking
fund contribution for the current fiscal year.
Notwithstanding these operations Of the
treasury department the representations OF
distress in business circles not only continued
but increased, and absolute peril seemed at
hand. In these circumstances the contribu-
tinn TO the siuking.tund for the current fiscal
year was at once completed by the expendi-
ture Of S2f6S4, 2S3 So In the purchase of
government bonds not due bearing AZ per
cent. Interest, the premium paid thereon ay-
eraging about twenty-fOur per cent for the
former and eight per cent. for the latter. In
addition to this the interest accruing during
the current year upon the outstanding bonded
Indebtedness OF the government was 10 some
extent anticipated, and banks selected as de.
positorles OF public money were permitted TO
somewhat increase their deposits
While the expedients thus employed 10 re-
lease TO the people the money lying idle ia the
treasury served to avert immediate danger
our surplus revenues have continued to accu.
mulate, the excess for the Dresent year
amounting on the first daY OF December to
s55, 25e, TOl.l9, and IS estimated to reach the
sum OF Sll3,O 900 on the Both Of June next
at which date 1t is expected that this sum
added to prior accumuations will swell the
surplus In the treasury to Si4OWu,0lO.
There seems to be no assurance, that, with
such a withdrawal from use OF the peoples
circulating medium, our business community
may not in the near future be subjected to the
same distress which was quite lately produced
from the same cause. And while the functions
OF our national treasury should be few and
simple and while Its best condition would be
reached, believe, By its entire disconnectIon
with private business interests, vet, when, by
perversion OF It's purposes, II idly holds mon
cy uselesslT snbsracted from the channels OF
trade, there seems to be reason for the calm
that some legitimate means should be devised
By the government to restore in an emergency,
without waste or extravaganza, such money
TO its place among the people.
ii such an emergency arises there now ex.
lists no clear and undoubtCd executive power
Of relief.
Heretofore the redcmntion Of 3 per cent.
bonds which were payable at the option Of the
government, has afforded a means for
the disbursement Of the excess Of our reyen.
ues; but these bonds have all been retired
and there are no bonds outstanding. the paw
ncnt Of which we have the right 10 Insist up
on. The contribution to the sinking fund,
which furnishes the occasion for expenditure
in the purchase 0f bonds, has been already
made for the current year, SO that there Is no
outlet In That direction
In the present state Of legislation, the only
pretense OF any existing executive power to
restore, at this time, any part Of our surplus
revenues to the people by It's expenditure,
consists In the suppOstion that the secretary
OF the treasury may enter the market and pur-
chase the bonds OF the government not yet
due at rate OF premium to be agreed upon.
The onlF provision Of law from which such
a power could be derived is found IN the ap.
preparation bill passed number Of wears ago,
and 1t is subject To the suspicion that II was
intended as temporary and limited Ia It's ap.
plicatiOn, instead Of comforting a continuing
discretion and authority.
No condition ought to exist which would
Justify the grant Of poweT to a single official
upon his judgment Of its necessity, TO with
hold from or release to the business of the
people, In an unusual manner, money held In
the treasury, and thus affect. at his will, the
financial situation Of the country: and II 1t Is
deemed wise TO lodge in the secretary Of the
treasury the authority in the present juncture
10 purchase bonds, it should be plainly vested,
and provided as far as possible, with such
checks and limitations as will define this off.
ciaPs right and discretion, and at tile same
time relieve him from undue responsibility.
In considering the question of purchasing
bonds as means Of restoring to circulation
The surplus money accommodating In the treas
ury, ii should be born in mind that premiums
must be paid on a large part Of these bonds
held as Investments which cannot be pur.
chased at any price, aud that combinations
among holders who are willing to sell, NAV
unreasonably enchance the cost Of such bonds
to the government.
It has been suggested that the present
bonded debt might be refunded at a less rate
Of interest, and the difference between the
nd and new security paid In cash, thus find
ing use for the surplus In The treasury. The
success Of this plan, 1t Is apparent, must de.
pend upon the vOlttiOn Of the holders Of the
present bonds; aud II is not entirely certain
that the iuducgment which must be offered
them would result In more financial benefit to
the government than The purchase Of bonds,
while the latter proposition would reduce the
principal Of the debt by actual payment, In
stead Of extending II.
The proposition to deposit tile money held
by the government in banks throughout the
country, for use by the people, Is, It seems to
me, exceedingly Objectionable in principle. as
too close relationship between
The operations Of the government treasury and
The business Of the country, and too extensive
a cOmmlngling Of their money, thus fostering
An unnatural reliance I'm DrfVnta busIuega innn